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Buying Stocks Bouncing off Support vs. Breaking Resistance

December 31st, 2012

Two Ways to Purchase Stock

Buying at Support

  • You can purchase when the stock bounces off the support and is heading in an upward direction.
  • Support buying is typically healthier than resistance buying in terms of risk management.

Buying at Resistance

  • You can purchase as the stock clears the resistance area.
  • Buying at resistance is riskier than buying at support because once the stock clears the resistance it will bounce off the new resistance line, but may dip back to prior levels if it isn't strong enough to continue upward.

You also do not want to purchase as the stock is descending because it may just continue to descend.

Author: Sasha Evdakov

Sasha is the creator of the Tradersfly and Rise2Learn. He focuses on high-level education speaking at events, writing books, and publishing video courses on business development, internet marketing, finance, and personal growth.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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